Is rooftop waterproofing the latest strata scam?

iStock-1430239569.jpg

These overlapping rolls of bituminous waterproofing will be sealed on to the roof with blowtorches.

I am getting the first inklings of a new … let’s call it an opportunity to make lots of money by dubious means that’s allegedly spreading through strata.

It relates to the waterproofing on ageing strata block roofs. Everything has a use-by date, from the cold cuts in your fridge to the friendships that have run out of social steam.

And waterproofing on the roof or any area open to the elements on a strata block is no exception. Of course, there’s a difference between a use-by date and a best-by limit.

And it seems some unscupulous waterproofing contractors may be taking advantage of over-anxious strata schemes to drain their bank accounts.

The most recent tale I’ve heard was from a friend whose tenant in their investment property had serious damp in the back of her wardrobe, which always got worse after heavy rain. It had caused mould and ruined a lot of her clothes.

A waterproofing expert came along, announced the waterproofing on the small but accessible common property roof had never been done properly. They said that all the tiles would have to be lifted, and the membrane re-laid and the the tiles replaced.

I think the quote was for about $25,000. Because the leaks only affected his apartment, my friend asked a plumber to trace it back from where the water emerged and, lo and behold, there was a hole in a downpipe where someone had dropped a cigarette. The lit ciggie had hit a bend, the pipe was dry at that time, so it just melted through.

After that, whenever it rained, the water from the drain leaked out into the wall behind her wardrobe. Suddenly what could have been a $25,000 job (which wouldn’t have worked anyway) was a $600 fix.

The plumber told my friend that waterproofing over-reach – either deliberate or accidental – is the latest money-making scheme in strata.

He said contactors turn up to buildings more than 20 years old that have sprung a few leaks, announce that the membrane must have reached the end of its functional life and start racking up the estimates for as big a job as they can justify.

Would any professional be so opportunistic and exploitative? All I can say is that waterproofing has all the requisite elements for flawed decision-making.

  1. Every strata owner knows that leaky concrete is bad, potentially very bad. It causes concrete cancer and no one wants that.
  2. No ordinary strata owner has the slightest idea of what waterproofing looks like, good or bad.
  3. The law says we have to maintain and repair our buildings. No ifs or buts.

Thus a less-than-honest contractor can, as the old saying goes, baffle owners with BS and blind them with science.

I know of one large building where their 20-year-old waterproofing has sprung a few leaks, mostly, it seems, caused by the roots of decorative shrubs.

A contractor has told owners that, because the waterproofing is near its end of life, they will probably need the entire area, the size of four tennis courts, to be stripped and re-waterproofed at a cost of several million dollars.

They may even have to dig up the floors of those apartments on the lower level that sit directly on the podium.

This will have to be done in in one contiguous membrane, owners have been told, because the Building Codes of Australia and Design and Building Practitioners Act (DBPA) don’t allow patching.

That, by the way, is utter nonsense. I asked the NSW Building Commission about this and they agreed that the following is true:

“Patching of isolated leaks in very large areas of waterproofing membrane, such as apartment block roofs and podiums, may be permitted under the DBPA and BCA, provided the patching work itself is undertaken by a registered and insured practitioner who guarantees their work.”

It seems that the various regulations do allow patching provided the patches don’t overlap or connect to other disrupted areas.

To be fair, there have been instances where efforts to patch leaky areas have resulted in the discovery that all of the membrane would need to be replaced. However, that is very different from an assumption that a membrane that’s more than 20 years old must require complete replacement.

Total replacement is being sold as a cautious approach when in fact it’s anything but. We can’t know for sure how the membrane on any specific building is behaving because this is a new issue for blocks built this century.

Will waterproofing that has lain undisturbed under, say, concrete tiles have aged as quickly as material more exposed to the elements?

Owners in blocks facing crippling special levies on the basis of a potentially flawed assumption need to pull hard on the handbrake as they hurtle towards a Rolls-Royce solution for what may turn out to be a Fiat Bambino problem.

This is a story that will run and run, as more apartment blocks built this century reach their waterproofing’s theoretical use-by dates and there’s no one there to tell owners what’s bona fide and what’s BS.

To be clear, we are not saying all or even any waterproofing jobs are a scam. But we do wonder about situations where the people who benefit most from the work are also those giving advice on what’s needed.

We’d be interested to hear from Flatchatters who’ve had experience in this area, good or bad. There’s already a response from one concerned owner on the Flat Chat Forum.

A version of this editorial comment first appeared on the Flat Chat newsletter.

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  • #83732 Reply | Quote
    Jimmy-T
    Keymaster

      Does a leak in your unit block roof mean your entire waterproofing needs to be replaced in one massive hit? Some contractors say it does.

      [See the full post at: Is rooftop waterproofing the latest strata scam?]

      If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
    Viewing 4 replies - 1 through 4 (of 4 total)
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    • #83733 Reply
      Mailbox
      Flatchatter

        I own a unit in a block of 16 units. Haven’t had too many problems as we have a very good/diligent Strata Committee.

        This building was completed in 2000 approx but we have had some water ingress problems. We have found out that the waterproofing wasn’t approved by council as no application was sent to them and therefore didn’t appear on any Strata Committee Minutes.

        We have employed engineers and after 3 quotes I have been given an approx cost of $200,000 per unit which is way beyond my budget! The other unit owners are also concerned as they too will have financial problems.

        We don’t have any recourse with the builder as he is not around anymore. I don’t know if it is “overkill”. Tiles  ripped up, scaffolding erected for all floors because other externals are not compliant.

        Engineers  have presented at meetings and seem to be ok but I wouldn’t know. The other owners  seem to be  knowledgeable and have asked questions of the engineers, which have been answered, but $3.2 million for a leaky roof and related issues seems excessive.

        #83742 Reply
        Strata Ken
        Flatchatter

          The only solution is for the building commissioner to look at some of the reports and remediation plans by engineers and the costing from builders and determine if these are reasonable. The previous comment has been asked for $200k per unit, when a typical unit build cost is about $500k. I’m starting to think that $200k per unit is standard fee for builders, or maybe for small unit blocks they make it about $3m for the total.

          #83744 Reply
          Jimmy-T
          Keymaster
          Chat-starter

            I’m wondering if this is one of those cases where mandatory maintenance projects are piled on to owners so that they are persuaded to sell to a developer. There’s one crook going around the Eastern suburbs of Sydney doing exactly that.  He’s buying into blocks in need of repair, reporting them to council for fire safety non-compliance, and NCAT for failure to repair common property, then buying the units off frightened owners at (literally) knock-down prices, then selling to developers for demolition at a massive profit.  It’s not illegal – he’s using the letter of the law – but immoral to the nth degree.

            Maybe in this case the building is a bit too new for that – but if it’s on a chunk of prime real estate, who knows?

            If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
            #83807 Reply
            Jimmy-T
            Keymaster
            Chat-starter

              My post on this on Linken-in got 2,128 Impressions (whatever that means) and reached 1,420 members. Meanwhile, there’s another example of this knee-jerk, high-cost and unnecessary reaction to any leaks in any building HERE.

              A few thoughts for committee members facing this dilemma:

              1. Just because your building is more than 20 years old, it doesn’t mean your waterproofing has failed or will do so any time soon.

              2. Just because you water proofing is leaking, it doesn’t mean it can’t be repaired.

              3. Just because there is water ingress when it rains, it doesn’t mean it’s coming from the roof.

              Strata buildings are complex – anyone who comes up with a one-size-fits-all response to water proofing problems is probably having a lend. The Building Commission needs to get on top of this before we’re in another strata insurance kickbacks or embedded network scandal.

              If you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.
            Viewing 4 replies - 1 through 4 (of 4 total)
            Reply To: Is rooftop waterproofing the latest strata scam?
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